Louisiana agrees to $350 million BP payout and resolution of coastal claims

Louisiana will receive approximately $350 million in a single early payment from BP under an agreement announced Oct. 23 that also calls for resolving the remaining coastal lawsuits involving the company.

The payment replaces $373 million BP was scheduled to pay Louisiana over the next seven years under the 2015 Deepwater Horizon Economic Damages Settlement. The state will receive about $23 million less in exchange for obtaining the money sooner.

Gov. Jeff Landry, Attorney General Liz Murrill and BP Chief Executive Officer Meg O’Neill signed the agreement, according to the company’s announcement.

The deal addresses two separate matters: Louisiana’s remaining economic-damages payments from the Deepwater Horizon disaster and outstanding coastal-zone claims against BP.

The Louisiana Illuminator reported that BP spokesman Paul Takahashi said the coastal litigation terms are confidential. He said the agreement resolves outstanding coastal-zone lawsuits and similar claims against the company by Louisiana and its parishes.

Landry described the agreement as part of his administration’s effort to settle longstanding litigation involving the oil and gas industry. In statements distributed by BP, Landry and Murrill said resolving the disputes would support future energy investment.

The Deepwater Horizon disaster killed 11 workers in 2010 and caused a massive oil spill in the Gulf of Mexico.

The accelerated payment concerns the economic-damages portion of the settlement. It should not be confused with the full range of BP’s obligations arising from the disaster, which also included environmental restoration and other claims.

Details on how Louisiana will use the accelerated payment were not included in BP’s announcement.